|

EUR/JPY declines as safe-haven demand supports Yen, Euro faces mixed signals

  • EUR/JPY edges lower around 182.60 on Thursday, down 0.14% on the day.
  • Demand for safe-haven assets supports the Japanese Yen amid the Middle East war.
  • Mixed Eurozone data and cautious ECB comments limit support for the Euro.

EUR/JPY edges lower around 182.60 on Thursday at the time of writing, down 0.14% on the day, as the pair remains under pressure while the Japanese Yen (JPY) benefits from renewed safe-haven demand amid geopolitical crisis.

The Japanese currency strengthens against several of its peers as the war in the Middle East intensifies. In this risk-averse environment, investors tend to turn to assets perceived as safer, which supports the JPY.

On the monetary policy front, Bank of Japan (BoJ) Governor Kazuo Ueda reaffirmed that the central bank could consider raising interest rates if economic and inflation conditions allow. However, markets widely expect the Japanese central bank to keep policy unchanged at its March meeting, given the economic uncertainty linked to geopolitical tensions and volatile energy prices.

In the Eurozone, macroeconomic data sends mixed signals for the economy. Eurozone Retail Sales declined by 0.1% MoM in January, surprising markets that had expected a 0.3% increase and pointing to softer household consumption at the start of the year. However, on a yearly basis, Retail Sales increased by 2%, above the 1.7% expected by analysts, suggesting that consumer spending remains relatively resilient despite the weaker monthly reading.

Regarding monetary policy, several European Central Bank (ECB) officials have called for caution. ECB Governing Council member and Bank of France Governor François Villeroy de Galhau stated that the central bank is closely monitoring developments in energy markets amid the Middle East conflict, while seeing no reason at present to raise interest rates.

At the same time, ECB policymaker Martins Kazaks said the central bank should “sit tight” given the uncertainty surrounding the conflict with Iran. Nevertheless, the recent surge in Oil and Gas prices has revived inflation concerns.

Euro Price Today

The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the strongest against the Australian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.21%0.13%0.11%-0.04%0.35%0.24%0.10%
EUR-0.21%-0.07%-0.09%-0.25%0.14%0.04%-0.11%
GBP-0.13%0.07%-0.06%-0.18%0.22%0.09%-0.05%
JPY-0.11%0.09%0.06%-0.16%0.24%0.11%-0.02%
CAD0.04%0.25%0.18%0.16%0.40%0.28%0.13%
AUD-0.35%-0.14%-0.22%-0.24%-0.40%-0.11%-0.27%
NZD-0.24%-0.04%-0.09%-0.11%-0.28%0.11%-0.16%
CHF-0.10%0.11%0.05%0.02%-0.13%0.27%0.16%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

More from Ghiles Guezout
Share:

Editor's Picks

EUR/USD nears 1.1600 after a volatile day

EUR/USD trades near the 1.1600 mark, boosted late in the American session by news coming from the White House. US President Donald Trump announced a deal with Iran to be signed "soon" by the Middle Eastern country, hinting at probably the weekend. Trump also canceled the planned attacks for Friday.

GBP/USD recovers above 1.3400 on USD selloff

GBP/USD is back firm above 1.3400 with the Greenback giving up most of its weekly gains, following headlines coming from the United States signaling US President Donald Trump signed a proclamation in which he announced that a deal with Iran is pretty much sealed.

Why is the Gold price rebounding amid easing US-Iran tensions?

Gold price trades in positive territory near $4,240 during the early European session on Friday. The precious metal rebounds from a six-month low after US President Donald Trump said he canceled planned military strikes against Iran, fueling hopes that a US-Iran truce deal is close. 

Crypto Today: Bitcoin, Ethereum, XRP rebound broadens despite continued US-Iran strikes

Bitcoin steadies its recovery on Thursday, edging higher toward $63,000 despite incessant capital outflows. Meanwhile, altcoins, including Ethereum and Ripple, exhibit subtle rebound signs, trading above $1,650 and $1.12, respectively.

AI Crypto Forecast: Bittensor, Near Protocol, Internet Computer rebound gains traction 
Cryptocurrency prices are broadly rising on Thursday, following an overstretched downtrend. Despite sticky geopolitical tensions in the Middle East, tokens at the intersection of the blockchain technology and Artificial Intelligence (AI), including Bittensor (TAO), Near Protocol (NEAR) and Internet Computer (ICP) are testing recovery potential.
4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.